UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

March 28, 2019

 

 

Commission File Number: 001-38590

 

 

CANGO INC.

 

 

10A, Building 3, Youyou Century Plaza

428 South Yanggao Road

Pudong New Area, Shanghai 200127

People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐            No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 

 

 

TABLE OF CONTENTS

Exhibit 99.1 — Press release: Cango Inc. Reports Fourth Quarter and Full Year 2018 Unaudited Financial Results

 

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: March 28, 2019

 

3

Exhibit 99.1

Cango Inc. Reports Fourth Quarter and Full Year 2018 Unaudited Financial Results

SHANGHAI, March 27, 2019 /PRNewswire/ — Cango, Inc. (NYSE: CANG) (“Cango” or the “Company”), a leading automotive transaction service platform in China, today announced its unaudited financial results for the fourth quarter and the full year of 2018.

Fourth Quarter 2018 Financial and Operational Highlights

 

•

Total revenues in the fourth quarter of 2018 were RMB321.1million (US$46.7 million), representing an increase of 12.6% from the third quarter of 2018, outperforming the high end of the management guidance by 8.8%.

 

•

The number of dealers covered by the Company stood at 46,565 as of December 31, 2018, representing an increase of 5% from the end of third quarter of 2018.

 

•

M1+ and M3+ overdue ratios for all financing transactions which the Company facilitated and remained outstanding were 0.74% and 0.37%, respectively as of December 31, 2018, as compared to 0.83% and 0.36%, respectively as of September 30, 2018.

 

•

After-market services facilitation revenues in the fourth quarter of 2018 increased to RMB43 million (US$6.3 million) from RMB39 million in the third quarter of 2018, continuing to contribute stable revenues.

Full Year 2018 Financial and Operational Highlights

 

•

Total revenues in the full year of 2018 were RMB1,091.4 million (US$158.7 million), representing a year-over-year increase of 3.7%.

 

•

The number of dealers covered by the Company increased to 46,565 as of December 31, 2018, representing a year-over-year increase of 34.4%.

 

•

M1+ and M3+ overdue ratios for all financing transactions which the Company facilitated and remained outstanding were 0.74% and 0.37%, respectively as of December 31, 2018, as compared to 0.86% and 0.34% respectively as of December 31, 2017.

 

•

After-market services facilitation revenues in the full year of 2018 were RMB101 million (US$14.6 million), representing a year-over-year increase of 283% and becoming a sustainable source of revenue for the Company.

Recent Developments

The strategic cooperation with Industrial and Commercial Bank of China (“ICBC”) and Didi Chuxing (“Didi”) has continued to make substantial progress. Following the completion of system integration with ICBC in the third quarter, the Company has begun negotiating with a number of major domestic OEMs on the joint launch of customized OEM-subsidized products nationwide once we reach commercial agreements.

As to the cooperation with Didi, the Company facilitated over 100 auto transactions for licensed Didi drivers across 7 cities within the last two months of 2018, and provided them with comprehensive solutions including finance and insurance. In addition, Didi has provided to its users and drivers with car purchase intensions the access to Cango services via its mobile app, thus providing the Company with new car sales facilitation business development opportunities.

The Company has successfully completed the acquisition of a licensed insurance brokerage firm. With the acquisition, the Company substantially augments its bundled solutions for insurance facilitation, and gains significant momentum to expand its offerings from accident insurance, anti-theft assurance to higher value-added products such as car insurance and health insurance, thus culturing our after-market services business into an important engine to drive our future growth.

“We concluded an eventful 2018 with a solid performance in the fourth quarter,” commented Mr. Jiayuan Lin, Chief Executive Officer of Cango. “Our total revenues continued its sequential growth, reaching RMB321.1 million in the fourth quarter of 2018, which further demonstrated the resilience of our business model despite a challenging macroeconomic environment in China. Such growth was driven by our effort to consistently optimize the quality and efficiency of our automotive financing facilitation service offerings, as well as maintain a satisfying attach rate of our after-market services by successfully executing our cross-selling strategies.”

Mr. Lin continued, “Going forward, we will remain committed to strengthening our core competencies by expanding and penetrating our nationwide dealership network while improving its efficiency, accelerating the development of our after-market services business to unlock the full monetization potential, and deepening collaborations with our partners to further diversify our revenue streams. Looking into 2019, we are confident that our leadership in the Chinese automotive transaction service industry will facilitate sustainable long-term growth.”

Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, “The initiatives that we have implemented to rejuvenate our growth have continued to yield results during the fourth quarter. Our total revenues increased by 12.6% to RMB 321.1 million in the fourth quarter of 2018 from RMB285.2 million in previous quarter, exceeding the high end of our previous guidance range. Revenues from after-market services facilitation, in particular, continued to increase to RMB43 million in the fourth quarter from RMB39 million in the previous quarter. To accelerate the growth of our after-market services facilitation business, we have completed the acquisition of a licensed insurance brokerage firm. This acquisition will enable us to expand our after-market service offerings and propel our growth in the coming quarters.”

Fourth Quarter 2018 Financial Results

REVENUES

Total revenues in the fourth quarter of 2018 were RMB321.1million (US$46.7 million), representing an increase of 12.6% from RMB285.2 million in the third quarter of 2018, and a 3.2% increase from RMB311.3 million in the corresponding period of 2017. The increase was primarily driven by the Company’s strategies to rejuvenate its growth and the increased contribution of after-market services business.

Revenues from after-market services facilitation in the fourth quarter of 2018 were RMB43 million (US$6.3 million) compared to RMB6.4 million in the same period of last year.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the fourth quarter of 2018 were RMB285.6million (US$41.5million), compared to RMB272.3 million in the corresponding period of 2017. The increase in operating cost and expenses was primarily attributable to the increases in cost of revenue, as well as research and development expenses.

 

•

Cost of revenue in the fourth quarter of 2018 increased by 7.1% to RMB158.8 million (US$23.1million) from RMB 148.2 million in the corresponding period of 2017. Cost of revenue as a percentage of total revenues in the fourth quarter of 2018 increased to 49.4% from 47.6% in the corresponding period of 2017. The increase was due to a higher average amount of commissions paid to dealers in each financing transaction.

•

Sales and marketing expenses in the fourth quarter of 2018 decreased by 17.8% to RMB47.0 million (US$6.8million) or 14.6% of total revenues from RMB57.1 million or 18.3% of total revenues in the corresponding period of 2017. The higher sales and marketing expenses in the fourth quarter of 2017 was primarily due to higher amounts of year-end bonus to our sales staff as they met performance targets in 2017.

 

•

General and administrative expenses were RMB52.3 million (US$7.6million) or 16.3% of total revenue in the fourth quarter of 2018, compared to RMB57.8 million or 18.6% of revenues in the corresponding period of 2017.

 

•

Research and development expenses in the fourth quarter of 2018 increased to RMB19.9 million (US$2.9 million) from RMB10.2 million in the corresponding period of 2017. Research and development expenses as a percentage of total revenues in the fourth quarter of 2018 increased to 6.2% from 3.3% in the corresponding period of 2017, mostly due to the expansion of the Company’s research and development team, as well as increases in salaries and benefits expenses.

NET INCOME

Net income was RMB 52.0 million (US$7.6 million) in the fourth quarter of 2018, compared to RMB29.8 million in the corresponding period of 2017, representing a year-over-year increase of 74.4%. Non-GAAP adjusted net income was RMB66.0million (US$9.6 million), compared to RMB29.8 million in the corresponding period of 2017. Non-GAAP adjusted net income excludes the impact of share-based compensation expenses. For further information, see “Use of Non-GAAP Financial Measure.”

NET INCOME PER ADS

Net income per ADS was RMB0.37 (US$0.05) in the fourth quarter of 2018, and RMB0.37 (US$0.05) on a diluted basis. Non-GAAP adjusted net income per ADS was RMB0.46 (US$0.07) in the fourth quarter of 2018, and RMB0.46(US$0.07) on a diluted basis. Each ADS represents two of the Company’s Class A ordinary shares.

BALANCE SHEET

As of December 31, 2018, the Company had cash and cash equivalents of RMB2,912.9 million (US$423.7million), compared to RMB3,642.8 million as of September 30, 2018.

Full Year 2018 Financial Results

REVENUES

Total revenues increased by 3.7% to RMB1,091.4 million (US$158.7 million) in the full year of 2018 from RMB1,052.2 million in 2017. The increase was primarily driven by the Company’s strategies to rejuvenate its growth and the increased contribution of after-market services business. Revenues from after-market services facilitation in the full year of 2018 were RMB101 million (US$14.6 million) compared to RMB26 million in 2017.

OPERATING COST AND EXPENSES

Total operating cost and expenses in the full year of 2018 were RMB 814.7 million (US$118.5 million), compared to RMB582.2 million in 2017. The increase in operating cost and expenses was primarily attributable to the increases in cost of revenue, sales and marketing expenses, general and administrative expenses as well as research and development expenses.

•

Cost of revenue in the full year of 2018 increased by 12.5% to RMB434.4 million (US$63.2 million) from RMB386.1 million in 2017. Cost of revenue as a percentage of total revenues in the full year of 2018 increased to 39.8% from 36.7% in 2017. The increase was due to a higher average amount of commissions paid to dealers in each financing transaction.

 

•

Sales and marketing expenses in the full year of 2018 increased to RMB167.2 million (US$24.3 million) from RMB114.1 million in 2017. Sales and marketing expenses as a percentage of total revenues in the full year of 2018 increased to 15.3% from 10.8% in 2017. The increase was due to the expansion of the Company’s sales personnel to 2,469 as of December 31, 2018 from 1,691 as of December 31, 2017.

 

•

General and administrative expenses were RMB 151.1 million (US$22.0 million) or 13.8% of total revenue in the full year of 2018, compared to RMB101.3 million or 9.6% of revenues in 2017. The increase was primarily due to increased administrative staff headcount and compensation, as well as the share-based compensation expenses.

 

•

Research and development expenses in the full year of 2018 increased to RMB 46.7million (US$6.8 million) from RMB19.4 million in 2017. Research and development expenses as a percentage of total revenues in the full year of 2018 increased to 4.3% from 1.8% in 2017, mostly due to the expansion of the Company’s research and development team, as well as increases in salaries and benefits expenses.

NET INCOME

Net income was RMB306.9 million (US$44.6 million) in the full year of 2018, compared to RMB349.1 million in 2017. Non-GAAP adjusted net income was RMB340.3 million (US$49.5 million), compared to RMB349.1 million in 2017. Non-GAAP adjusted net income excludes the impact of share-based compensation expenses. For further information, see “Use of Non-GAAP Financial Measure.”

NET INCOME PER ADS

Net income per ADS was RMB2.17 (US$0.32) in the full year of 2018, and RMB2.16 (US$0.31) on a diluted basis. Non-GAAP adjusted net income per ADS was RMB2.41 (US$ 0.35) in the full year of 2018, and RMB2.39 (US$ 0.35) on a diluted basis. Each ADS represents two of the Company’s Class A ordinary shares.

Business Outlook

For the first quarter of 2019, the Company expects total revenues to be between RMB310 million and RMB330 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

Conference Call Information

Cango’s management will hold a conference call on Wednesday, March 27, 2019 at 9:00 P.M. Eastern Time or Thursday, March 28, 2019 at 9:00 A.M. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

 

International:		+1-412-902-4272
United States Toll Free:		+1-888-346-8982
China Toll Free:		4001-201-203
Hong Kong Toll Free:		800-905-945
Conference ID:		Cango Inc.

The replay will be accessible through March 27, 2019 by dialing the following numbers:

 

International:		+1-412-317-0088
United States Toll Free:		+1-877-344-7529
Access Code:		10129353

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.cangoonline.com/.

About Cango, Inc.

Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in China connecting dealers, financial institutions, car buyers, and other industry participants. Founded in 2010 by a group of pioneers in China’s automotive finance industry, the Company is headquartered in Shanghai and engages car buyers through a nationwide dealer network. The Company’s services primarily consist of automotive financing facilitation, automotive transaction facilitation, and after-market services facilitation. By utilizing its competitive advantages in technology, data insights, and cloud-based infrastructure, Cango is able to connect its platform participants while bringing them a premium user experience. Cango’s platform model puts it in a unique position to add value for its platform participants and business partners as the automotive and mobility markets in China continue to grow and evolve. For more information, please visit: www.cangoonline.com.

Definition of Overdue Ratios

We define “M1+ overdue ratio” as (i) exposure at risk relating to financing transactions for which any installment payment is 30 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.

We define “M3+ overdue ratio” as (i) exposure at risk relating to financing transactions for which any installment payment is 90 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due.

Use of Non-GAAP Financial Measure

In evaluating the business, the Company considers and uses Non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company’s operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors’ assessment of its operating performance.

Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using Non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in the business and is not reflected in the presentation of Non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of Cango’s non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB 6.8755 to US$1.00, the noon buying rate in effect on December 31, 2018 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the “Business Outlook” section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango’s goal and strategies; Cango’s expansion plans; Cango’s future business development, financial condition and results of operations; Cango’s expectations regarding demand for, and market acceptance of, its solutions and services; Cango’s expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Jenny Tang

Cango Inc.

Tel: +86 21 3183 5088 ext.5521

Email: [email protected]

Jack Wang

ICR Inc.

Tel: +1 (646) 405-5056

Email: [email protected]

CANGO INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data)

 

		As of December 31, 2017				As of December 31, 2018
		RMB				RMB				US$
ASSETS:
Current assets:
Cash and cash equivalents			803,270,815				2,912,901,189				423,663,906
Restricted Cash			10,060,360				298,900,155				43,473,224
Short-term investments			62,380,000				265,869,717				38,669,147
Accounts receivable, net			85,595,207				86,513,830				12,582,915
Financing receivable, net			832,052				5,420,617				788,396
Short-term finance leasing receivable, net			—				1,123,703,618				163,435,913
Short-term amounts due from related parties			1,253,833				—				—
Prepaid expenses and other current assets			144,858,222				61,272,518				8,911,718
Total current assets			1,108,250,489				4,754,581,644				691,525,219
Non-current assets:
Restricted Cash			319,352,347				668,627,618				97,247,854
Long-term investments			191,002,602				292,099,059				42,484,046
Equity method investments			165,659,951				1,448,416				210,663
Goodwill			—				145,063,857				21,098,663
Property and equipment, net			9,751,738				18,286,218				2,659,620
Intangible assets			1,701,770				1,693,407				246,296
Deferred tax assets			67,774,187				100,194,993				14,572,757
Long-term amounts due from related parties			122,383,094				—				—
Long-term finance leasing receivable, net			—				1,282,457,409				186,525,694
Other non-current assets			10,991,399				36,687,583				5,335,988
Total non-current assets			888,617,088				2,546,558,560				370,381,581
TOTAL ASSETS			1,996,867,577				7,301,140,204				1,061,906,800
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings			—				681,702,116				99,149,461
Long-term debts—current			—				445,491,935				64,794,115
Accrued expenses and other current liabilities			328,522,735				211,458,501				30,755,363
Short-term amounts due to related parties			5,525,000				—				—
Risk assurance liabilities			129,935,457				173,210,363				25,192,402
Income tax payable			62,320,855				53,517,717				7,783,829
Total current liabilities			526,304,047				1,565,380,632				227,675,170
Non-current liabilities:
Long-term borrowings			175,000,000				472,793,340				68,764,939
Other non-current liabilities			35,555,908				7,599,404				1,105,290
Total non-current liabilities			210,555,908				480,392,744				69,870,229
Total liabilities			736,859,955				2,045,773,376				297,545,399
Mezzanine equity
Convertible Preferred Shares
Series A-1			1,501,153,698				—				—
Series A-3			307,816,408				—				—
Series B			2,132,875,970				—				—
Series C			—				—				—
Total mezzanine equity			3,941,846,076				—				—
Shareholders’ equity
Ordinary shares			83,145				204,260				29,708
Series A-2 Convertible Preferred Shares			1,450				—				—
Additional paid-in capital			4,100,000				4,444,078,463				646,364,404
Accumulated other comprehensive income/(loss)			(398,698	)			109,452,996				15,919,278
Accumulated (deficit) retained earnings			(2,711,414,472	)			698,036,438				101,525,188
Total Cango Inc.’s (deficit) equity			(2,707,628,575	)			5,251,772,157				763,838,578
Non-controlling interests			25,790,121				3,594,671				522,823
Total shareholders’ (deficit) equity			(2,681,838,454	)			5,255,366,828				764,361,401
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY			1,996,867,577				7,301,140,204				1,061,906,800

CANGO INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data)    

 

		Three months ended December 31,												For the years ended December 31,
		2017				2018								2017				2018
		RMB				RMB				US$				RMB				RMB				US$
Revenues			311,327,408				321,136,126				46,707,312				1,052,203,719				1,091,414,277				158,739,623
Operating cost and expenses:
Cost of revenue			148,222,787				158,774,653				23,092,816				386,053,922				434,351,148				63,173,754
Sales and marketing			57,086,818				46,952,207				6,828,915				114,145,319				167,244,419				24,324,692
General and administrative			57,827,099				52,277,614				7,603,464				101,276,675				151,075,936				21,973,084
Research and development			10,236,313				19,942,024				2,900,447				19,418,576				46,709,014				6,793,544
Net loss (gain) on risk assurance liabilities			(1,226,135	)			(6,034,709	)			(877,712	)			(38,866,874	)			(21,273,866	)			(3,094,155	)
Provision for financing receivables			156,124				13,659,192				1,986,647				156,124				36,588,074				5,321,515
Total operation cost and expense			272,303,006				285,570,981				41,534,577				582,183,742				814,694,725				118,492,434
Income from operations			39,024,402				35,565,145				5,172,735				470,019,977				276,719,552				40,247,189
Interest income			6,387,217				20,096,730				2,922,948				16,164,309				61,465,449				8,939,779
income from equity method investments			700,369				285,318				41,498				4,855,508				42,684,659				6,208,226
Interest expense			(2,980,347	)			(4,751,027	)			(691,008	)			(12,993,624	)			(19,010,616	)			(2,764,979	)
Foreign exchange loss, net			(1,058,472	)			764,203				111,149				(25,403,473	)			1,447,099				210,472
Other income			215,132				1,358,496				197,585				16,196,581				34,330,156				4,993,113
Other expenses			(96,268	)			(1,100,741	)			(160,096	)			(378,846	)			(1,629,410	)			(236,988	)
Net income before income taxes			42,192,033				52,218,124				7,594,811				468,460,432				396,006,889				57,596,812
Income tax expenses			(12,372,341	)			(200,115	)			(29,106	)			(119,403,000	)			(89,082,554	)			(12,956,520	)
Net income			29,819,692				52,018,009				7,565,705				349,057,432				306,924,335				44,640,292
Less: Net income attributable to the noncontrolling interest shareholders			(5,058,215	)			(3,314,668	)			(482,098	)			8,047,621				4,232,270				615,557
Net income attributable to Cango Inc.’s shareholders			34,877,907				55,332,677				8,047,803				341,009,811				302,692,065				44,024,735
Less: Accretion of Series C Preferred Shares			—				—				—				—				—				—
Net income attributable to Cango Inc.’s ordinary shareholders			34,877,907				55,332,677				8,047,803				341,009,811				302,692,065				44,024,735
Net income per ADS(Note 1):
Basic			0.28				0.37				0.05				2.70				2.17				0.32
Diluted			0.28				0.37				0.05				2.70				2.16				0.31
ADSs used in net income per ADS computation (Note 1):
Basic			63,574,601				151,404,946				151,404,946				63,574,601				139,578,372				139,578,372
Diluted			126,415,858				151,404,946				151,404,946				126,415,858				140,436,903				140,436,903
Other comprehensive income, net of tax
Unrealized losses on available-for-sale securities			(398,698	)			654,828				95,241				(2,463,956	)			822,343				119,605
Reclassification of losses to net income			—				—				—				2,065,258				—				—
Foreign currency translation adjustment			—				1,752,329				254,866				—				109,029,352				15,857,662
Total comprehensive income			29,420,994				54,425,166				7,915,812				348,658,734				416,776,030				60,617,559
Total comprehensive income attributable to Cango Inc.’s shareholders			34,479,209				57,739,834				8,397,910				340,611,113				412,543,760				60,002,002
Note 1: Each ADS represents two ordinary shares.

CANGO INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amounts in Renminbi (“RMB”) and US dollar (“US$”), except for number of shares and per share data
		Three months ended December 31,												For the years ended December 31,
		2017				2018								2017				2018
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
		RMB				RMB				US$				RMB				RMB				US$
Net income			29,819,692				52,018,009				7,565,706				349,057,432				306,924,335				44,640,293
Add: Share-based compensation expenses			—				13,971,836				2,032,119				—				33,410,913				4,859,416
Cost of revenue			—				572,846				83,317				—				1,369,848				199,236
Sales and marketing			—				2,976,001				432,841				—				7,116,524				1,035,055
General and administrative			—				9,696,453				1,410,291				—				23,187,170				3,372,434
Research and development			—				726,537				105,670				—				1,737,371				252,690
Less: Purchase of subsidiary							—				—								—				—
income from equity method investments							—				—								—				—
Non-GAAP adjusted net income			29,819,692				65,989,845				9,597,825				349,057,432				340,335,248				49,499,709
Less: Net income attributable to the noncontrolling interest shareholders			(5,058,215	)			(3,314,668	)			(482,098	)			8,047,621				4,232,270				615,558
Non-GAAP adjusted net income attributable to Cango Inc.’s shareholders			34,877,907				69,304,513				10,079,923				341,009,811				336,102,978				48,884,151
Accretion of Series C Preferred Shares							—				—								—				—
Non-GAAP adjusted net income attributable to Cango Inc.’s ordinary shareholders			34,877,907				69,304,513				10,079,923				341,009,811				336,102,978				48,884,151
Non-GAAP adjusted net income per ADS-basic (Note 1)			0.28				0.46				0.07				2.70				2.41				0.35
Non-GAAP adjusted net income per ADS-diluted (Note 1)			0.28				0.46				0.07				2.70				2.39				0.35
Weighted average ADS outstanding—basic			63,574,601				151,404,946				151,404,946				63,574,601				139,578,372				139,578,372
Weighted average ADS outstanding—diluted			126,415,858				151,404,946				151,404,946				126,415,858				140,436,903				140,436,903
Note 1: Each ADS represents two ordinary shares.